Rationality of Insurance Firms' Forecasts : Results of Unbiasedness and Efficiency Tests
Many applied studies have tried to test the implications of rational expectations hypothesis on survey data. This study provides evidence on the rationality of economic forecasts made by insurance firms in a developing economy-Malaysia. Our unbiasedness test results suggest that anticipated gross re...
| Main Author: | |
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| Format: | Article |
| Language: | English |
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UUM Press
2020-01-01
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| Series: | Malaysian Management Journal |
| Online Access: | https://www.scienceopen.com/document?vid=946bd5fe-596f-4c87-aca7-6aa00a235c8e |
| _version_ | 1797896920525438976 |
|---|---|
| author | Muzafar Shah Habibullah |
| author_facet | Muzafar Shah Habibullah |
| author_sort | Muzafar Shah Habibullah |
| collection | DOAJ |
| description | Many applied studies have tried to test the implications of rational expectations hypothesis on survey data. This study provides evidence on the rationality of economic forecasts made by insurance firms in a developing economy-Malaysia. Our unbiasedness test results suggest that anticipated gross revenue and employment are unbiased predictors of actual gross revenue and employment respectively. Furthermore, our efficiency tests results indicate that insurance firms utilized relevant information efficiently at the time the forecasts were made. |
| first_indexed | 2024-04-10T07:49:24Z |
| format | Article |
| id | doaj.art-faa9f2c5d2a240eeab984031b208b5dd |
| institution | Directory Open Access Journal |
| issn | 0128-6226 2289-6651 |
| language | English |
| last_indexed | 2024-04-10T07:49:24Z |
| publishDate | 2020-01-01 |
| publisher | UUM Press |
| record_format | Article |
| series | Malaysian Management Journal |
| spelling | doaj.art-faa9f2c5d2a240eeab984031b208b5dd2023-02-23T10:21:48ZengUUM PressMalaysian Management Journal0128-62262289-66512020-01-0110.32890/mmj.5.1-2.2001.8590Rationality of Insurance Firms' Forecasts : Results of Unbiasedness and Efficiency TestsMuzafar Shah HabibullahMany applied studies have tried to test the implications of rational expectations hypothesis on survey data. This study provides evidence on the rationality of economic forecasts made by insurance firms in a developing economy-Malaysia. Our unbiasedness test results suggest that anticipated gross revenue and employment are unbiased predictors of actual gross revenue and employment respectively. Furthermore, our efficiency tests results indicate that insurance firms utilized relevant information efficiently at the time the forecasts were made. https://www.scienceopen.com/document?vid=946bd5fe-596f-4c87-aca7-6aa00a235c8e |
| spellingShingle | Muzafar Shah Habibullah Rationality of Insurance Firms' Forecasts : Results of Unbiasedness and Efficiency Tests Malaysian Management Journal |
| title | Rationality of Insurance Firms' Forecasts : Results of Unbiasedness and Efficiency Tests |
| title_full | Rationality of Insurance Firms' Forecasts : Results of Unbiasedness and Efficiency Tests |
| title_fullStr | Rationality of Insurance Firms' Forecasts : Results of Unbiasedness and Efficiency Tests |
| title_full_unstemmed | Rationality of Insurance Firms' Forecasts : Results of Unbiasedness and Efficiency Tests |
| title_short | Rationality of Insurance Firms' Forecasts : Results of Unbiasedness and Efficiency Tests |
| title_sort | rationality of insurance firms forecasts results of unbiasedness and efficiency tests |
| url | https://www.scienceopen.com/document?vid=946bd5fe-596f-4c87-aca7-6aa00a235c8e |
| work_keys_str_mv | AT muzafarshahhabibullah rationalityofinsurancefirmsforecastsresultsofunbiasednessandefficiencytests |